South Carolina is facing budget cuts. The number of employees needs to be reduced over the next three years at all state agencies. The state decides to stop hiring new employees to fill vacated positions to comply with budgetary constraints. This approach is called
A) attrition.
B) natural turnover.
C) layoffs.
D) passive firing.
E) downsizing.

Question

Quizplus · Accepted Answer

Attrition refers to not hiring new employees to replace those who leave or retire. Since the state is facing budget cuts and needs to reduce the number of employees, stopping hiring new employees through attrition is a more gradual and less severe approach than layoffs or downsizing. Natural turnover (B) refers to employees leaving on their own accord, which is not a deliberate action by the state, and passive firing (D) is not a commonly used term. Layoffs (C) and downsizing (E) are more drastic measures involving the elimination of positions and the termination of employees, which are not necessarily required in this situation.

South Carolina Is Facing Budget Cuts